Packaging Supply Chain Network Status

Lumi is tracking operational data from thousands of factories to provide up-to-date information about supply chain disruptions, including COVID-19, holidays, weather delays, tariff changes, and more.

Any other information you'd like to see? Tweet us @Lumi. Manufacturers, contact us at tracker@lumi.com

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October 21, 2020

U.S. International Trade Commission decides no on further duties for Chinese glass products

The U.S. International Trade Commission found on October 20, 2020 that no U.S. industry is materially injured by imports of glass containers from China. This is counter to what was determined in September by the U.S. Department of Commerce, however, both organizations must agree that imports are injuring the domestic industry in order for duties to go into effect.

As a result of the Commission’s negative determination, no further anti dumping duty will be applied or countervailing duty deposits required for imports of glass containers from China, and importers will receive refunds of the deposits that they have previously paid.

September 28, 2020

Potential anti-dumping duty for Chinese glass products

A new anti-dumping duty (ADD) is being considered for most glass items brought into the US from China. The items covered under the proposed ADD are glass bottles and jars that hold from 2 fluid ounces up to 1 gallon. 

The tariff would vary across industries and some manufacturers will be granted reduced rates, however the vast majority of factories affected would be subject to a rate of up to 256%.

In September 2019 a petition was filed by The American Glass Packaging Coalition claiming that manufacturers in China are receiving subsidies from the Chinese government.

On September 14, 2020, the U.S. Department of Commerce (DOC) made its final determination in favor of the new ADD, however in order for tariffs to be imposed, both the DOC and the U.S. International Trade Commission (ITC) must agree that imports of glass containers from China are injuring the domestic industry.

The ITC is currently scheduled to make its final determination in the anti-dumping duties investigation by October 26, 2020. If decided in favor of the new ADD, an anti-dumping order will be issued by November 2, 2020.

The ITC has not provided any indication of how they will rule in this determination, however on June 9, 2020, in a countervailing investigation, the ITC decided against a new ADD.

September 11, 2020

Manufacturers based in Louisiana and Texas are still recovering from Hurricane Laura, though most production capacity has been restored.

Chinese manufacturers are at full capacity and working through peak season orders. Production will be shut down from October 1 to 8 for the Golden Week holiday.

Freight

Ocean freight rates from China to the US continue to climb following a general rate increase at the beginning of September. Eastbound transpacific freight rates are 140% higher than the same time last year.

Despite carriers restoring cancelled sailings, demand is currently outpacing capacity.

August 27, 2020

Hurricane Laura is impacting production at many facilities throughout Louisiana and parts of Texas. Freight routed through that region is also experiencing delays. 

We are closely monitoring the situation. If you have active orders impacted by Hurricane Laura, we will contact you with specific updates.

August 14, 2020

The Lumi manufacturing network of remains fully operational. With peak season underway, take a look at our Peak Season Deadlines to see how lead times are impacted.

Freight

Ocean freight rates from China to the US are rising once again. A general rate increase was implemented on Aug 15th sending China to US rates to recent highs. While rates have increased to both US coasts, the West Coast has increased more dramatically with a 15% climb since the end of July. Eastbound trans-Pacific shipments booked for August 15 departures are paying about $3,600 per FEU to the West Coast and $4,100 per FEU to the East Coast.

Due to high ocean rates and delays, air freight rates are increasing and are likely to continue to through the month.

August 7, 2020

The Lumi network of manufacturers remains fully operational in the US and China. Increased demand is causing delays of 1-2 weeks in both countries.

Both ocean and air carriers continue to cope with increased demand and availability. Rates are steady for now, but are likely to increase in the near term.

July 31, 2020

The Lumi network remains fully operational, though some manufacturers are reporting capacity constraints. These constraints are mostly driven by demand related to the upcoming holidays.

Ocean carriers are adding capacity to transpacific shipping lanes for August. Current vessels are at full capacity and demand remains steady. Book in advance whenever possible.

After falling steadily since May, air freight rates are expected to rise through August with the launch of products from Sony, Apple, and Samsung.

July 21, 2020

Lumi’s network remains fully operational with no closures. Expect 1-2 week delays on some specialty items.

Steady volumes are keeping ocean rates high. Though capacity is tight, orders are currently shipping at regular volumes and cadence. Only 4.7% of sailings from Asia to North America have been “blanked” (cancelled) for Q3 compared to 14.7% in Q2.

With fewer converted passenger jets currently in use, air freight rates from China to the US are on the rise again.

Typically, back-to-school business puts a strain on shipping capacity in late summer. In the coming weeks, we may see volumes increase due to back-to-school volumes, and more generally as companies try to get out ahead of a potential COVID-19 resurgence. 

July 13, 2020

The Lumi network remains fully operational with no closures. Expect 1-2 week delays on some specialty items.

Ocean freight and air freight rates are relatively unchanged from last week.

July 6, 2020

All manufacturers in the Lumi network are open. US manufacturers have not been impacted by the recent increase in COVID-19 cases.

Freight

After last week’s general rate increase, ocean freight rates have leveled off and look to remain stable for the the next few weeks. Improvements in capacity have helped and it is likely that short-term demand has peaked.

Air freight rates are beginning to normalize as the capacity crunch and PPE-driven demand continue to ease.

June 26, 2020

All manufacturers in the Lumi network are open. Chinese manufacturers are entering into the busy season. To see how the busy season impacts order deadlines, take a look at our Peak Season Deadlines.

Freight

The increase in ocean freight costs has slowed compared to the last few weeks, though demand and restricted capacity are keeping prices high. Carriers have restored some previously cancelled sailings for July in order to stabilize availability and price as much as possible.

Air freight rates have significantly dropped from their April peak, though they are nearly double what they were this time last year.

June 18, 2020

All manufacturers in the Lumi network are open. Chinese manufacturers continue their ramp-up into the busy season. Expect delays in production of 1-2 weeks for now. Take a look at our Peak Season Deadlines to see how these delays are impacting order deadlines.

Ocean Freight

Demand for ocean freight continues to increase. This combined with limited capacity from cancelled sailings has pushed rates higher. Prices for China-US East Coast reached $3,000/FEU for the first time since July 2019. China-US West Coast rates are at their highest level since November 2018. 

At the beginning of this week, some cancelled sailings were restored. However, with businesses uncertain about consumer spending, carriers are unsure how much capacity to keep on the market. Expect this uncertainty to be a constant throughout June and into July.

June 10, 2020

All manufacturers in the Lumi network remain open. Chinese manufacturers are entering their busy season. Delays of 1-2 weeks are in effect, and will extend in the coming weeks.

Freight

Air freight rates continue to decline from highs earlier this year. This is due to more capacity with the increase of passenger air travel as well as cooling demand. Still, rates from Shanghai and North America are roughly double what they were this time last year.

Ocean rates have increased unexpectedly due to a spike in demand and limited capacity. Some carriers are reporting delays of up to two weeks, and rate increases of 15-20%. Transpacific sailing capacity for Q3 is expected to be 5-10% less than the same time last year. Carriers have just announced more scheduled cancellations for this period.

June 3, 2020

No reported closures within the Lumi network. Plan on 1-week delays for US manufacturers. 

China’s busy season (which typically comes at the end of summer) is starting early. While Chinese manufacturers are fully operational, some capacity is still being diverted for the production of PPE and other coronavirus related items. They’re also seeing a rise in orders, possibly due to companies’ preparing for the holidays in the US. Expect delays of 1-2 weeks for now. Closer to July, delays will increase.

Freight

Air freight rates remain high in comparison to this time last year, but have significantly reduced from peaks seen earlier in the quarter. Improved capacity and steps to resolve bottlenecks are resulting in eased prices. Ocean freight rates remain stable, though inconsistent availability may result in up to 1-week delays.

May 26, 2020

Network status remains the same with no new closures, 1-week delays for US manufacturers, and China is operating at full capacity. 

Expect high rates for air freight and standard rates for ocean freight as both continue to cope with increased demand and availability.

May 18, 2020

Over 250 factories in the United States have reported status updates to Lumi this week. 

US manufacturing

There have been no newly reported factory closures. All manufacturers in the Lumi network are operational. Given demand, plan for delays of up to one week.

China manufacturing

Manufacturers are operating at full capacity and have mostly recovered from the backlog of orders.

Freight

Ocean freight rates fell slightly, but they remain relatively stable due to scheduled cancellations. Some carriers have added vessels to June sailing schedules. It is unclear what impact this will have on rates and availability. Plan for 1-2 week delays until more information is available.

The conversion of passenger jets to air cargo has mostly restored capacity. Air freight rates remain high due to the increased demand, though are leveling out.

April 30, 2020

Over 260 factories in the United States have reported status updates to Lumi this week. 

US manufacturing

The closed manufacturers that were previously reported have reopened and the entire Lumi network is up and running. Though all factories are running at full capacity, you can still expect delays of up to two weeks due to increased demand. 

China manufacturing

Production has fully recovered from initial COVID-19 shut downs. All factories surveyed are back at full capacity. Expect production delays of up to one week due to increased demand. 

Freight

Ocean freight rates remain unchanged and vessel availability remains limited due to scheduled cancellations. Vessel cancellations have been scheduled through June. Plan for 1-2 week delays until then.

Air cargo rates remain high due to the decrease in passenger jet capacity and increase in demand for urgent supplies. Rates are 3-4 times normal levels for this time of year and will likely continue to increase.

April 22, 2020

Over 180 factories in the United States have reported status updates to Lumi this week.

US manufacturing

Packaging factories remain an essential service and continue to operate at full capacity, with one exception in New York which was first reported in late March. Increased demand could increase lead times by up to 2 weeks. 

China manufacturing

Production has almost fully recovered from initial COVID-19 shut downs. All factories surveyed are back at full capacity. 

International freight shipping 

To control freight rates, ocean carriers have cancelled a record number of sailings. Rates from China to the US remain mostly unchanged, but you should plan for 1-2 week delays due to limited vessel availability.

Air cargo rates remain high due to a decrease in passenger jet capacity and an increase in demand for urgent supplies. Rates are currently 3 to 4 times normal levels for this time of year and will likely continue to increase.

April 8, 2020

US manufacturing

Over 700 factories in the United States have reported status updates to Lumi this week. Packaging factories have continued to be deemed essential services and are remaining operational. No new closures have been reported. Up to 2 week delays can still be expected for most factories in the US.

March 30, 2020

The Network Status tracker now features a map that helps you track downtime across states and cities in the United States.

Over 260 factories have reported their status in the last 24 hours. Here are the latest updates.

US manufacturing

Packaging factories reporting across every state have been designated as essential business and are still in operation. 

As of this writing, only one factory (in the state of New York) reported as closed until further notice. This is an independent family-owned factory that has been quarantined.

Less than 10% of US factories are reporting lead time increases. These are primarily due to increases in demand rather than decrease in capacity.

China manufacturing

China has continued its gradual recovery. Guidance remains at roughly 1-2 week lead time delays.

March 25, 2020

Lumi members have asked us if the Defense Production Act could impact their packaging supply chain. Last night we surveyed manufacturers representing over 400 of the top American paper-based packaging factories that could be involved in such an effort.

As of this writing, paper products are considered essential and exempt from workforce reductions including in New York State whose Department of Agriculture states:

Forest products businesses, including those involved in forestry operations, logging, manufacture of lumber and paper products, and the distribution of those products are essential and exempt from the State's guidance for workforce reduction.

If the Defense Production Act is invoked, manufacturers in the Lumi Network anticipate that there is enough capacity available to maintain normal operations.

Some factories that prioritize packaging for essential products are currently experiencing high load. For that reason we continue to recommend placing orders early to mitigate any lead time delays.

March 23, 2020

Over 2,000 factories received our latest survey, with hundreds of factories reporting so far. Results will be updated throughout the day as more factories report.

US manufacturing

2 factories so far have reported closures or severely limited availability. Both are independent manufacturers in the New York area. This could extended lead times by 3-4 weeks or more. We recommend that companies relying on New York packaging manufacturing contact us to set up load balancing in Lumi to prepare for any further shut downs.

Over 99% of factories across the US are still operating at full capacity, however there is still uncertainty about further shutdowns. 

China manufacturing

  • Factories continue to make their gradual recovery with 1-2 week delays still common.
  • Air freight shortage has persisted, so we recommend ocean freight whenever possible.
March 20, 2020

Companies have asked us about the risk of COVID-19 transmission on packaging, and what they should tell their customers. Here's what we know so far.

March 20, 2020

Yesterday evening, California issued the “Safer at Home" order, enforcing further restrictions on movements and gatherings of more than 10 people. In the order, Governor Gavin Newsom stated, "The supply chain must continue."

As part of the supply chain, packaging factories are considered essential and are remaining open in California until further notice. We have not been notified of any closures as of this writing.

This order is likely to ripple out to other states. Consider contingencies with factory redundancy across Lumi regions. The Lumi Network covers factories across every US region. We're here to help you set up load balancing or alternate factories.

If your distribution centers have closed and you are unable to receive product, please let us know and we can work with you to find alternative storage. 

Contact your Lumi team or create a Project.

March 16, 2020

A new COVID-19 survey has been sent this morning to manufacturers. Factories in the Lumi Network across US and China are still reporting operational. We will continue to update this page as data comes in. Our recommendations from March 12th still apply.

US manufacturing

  • 179 US factories have reported today. All are reporting 100% availability.
  • 164 reported not having enough information to predict upcoming closures in the next 2 weeks.

China manufacturing

  • Reports from China indicate lower guidance for lead time. Reduced from 1-3 weeks down to 1-2 weeks.
  • Pricing on paper and corrugated products is still up to 10% higher than usual.
March 12, 2020

Recommendations on how to mitigate the ripple effects of COVID-19 on your packaging supply chain are on our blog.

March 11, 2020

The unpredictable spread of COVID-19 has caused delays across supply chains globally. The impact on packaging for Lumi members so far has been localized in China.

As of this writing, all of the factories in the Lumi network are operational, however some factories in China are experiencing 1-3 week delays as they catch up to the backlog from Lunar New Year and the coronavirus closures.

We surveyed 24 manufacturers in the Lumi network including 12 in the US and 12 in China, between March 5th and 9th 2020, to gather information about how exactly your packaging supply chain is being impacted. Find more details in our webinar recorded earlier today.

China manufacturing

Manufacturers in China are taking greater precautions than in the United States. These include all employees wearing face masks, adding more wash stations, cleaning surfaces more frequently, and monitoring body temperature.

Some manufacturers are reporting 5-10% personnel shortages due to quarantine measures, but have stated that this has not affected production capacity.

  • 100% of factories have reopened factories since Feb 17
  • 22% reported 5-10% cost increases for raw materials, especially paper
  • 75% reported lead times extended by 1-3 weeks as they catch up with backed up orders from factory shut downs and manage material shortages.

China logistics

Air freight costs from China are still high — up to $1/KG increase from end of February to first week of March.

Some of the biggest delays may come from lack of air space, due to flight cancellations. There's also an increase of expedited orders being air freighted out of China to account for delays. This all results in a major cut in cargo space. Order early to avoid air freight and mitigate costs.

US manufacturing

All US manufacturers in the Lumi network are operating at full capacity. Prevention among US manufacturers is less strict right now. Only hand washing and safety training were consistently reported.

With the rapidly increasing number of cases, the biggest risk reported by US manufacturers is a personnel shortage.

  • 100% of factories reported that they're open and operating.
  • 100% of factories reported using US raw material sources, and therefore they're not dealing with any material delays.
  • No factories reported quarantined personnel at this time.
  • No factories reported increased lead times or cost.
March 9, 2020

Wednesday March 11th at 10AM PST, we will be hosting a webinar to discuss the impacts of the coronavirus (COVID-19) on the Lumi factory network and packaging supply chain more broadly. Sign up here.

January 29, 2020

You’ve no doubt heard about the coronavirus (COVID-19) outbreak in China, specifically the Hubei province. While there are no factories in the Lumi network within the Hubei province, the outbreak could soon prompt factory shutdowns in neighboring provinces that may cause delays.

​As of this writing, no lead times have been affected by the outbreak, but should shutdowns continue, you may see delays in order lead times, preproduction sample lead times, and quoting from factories in the these areas. 

Before the outbreak, we forecasted shutdowns for Lunar New Year throughout early February. We are keeping in close contact with manufacturers in China and will update you should shutdowns be extended past those dates.

October 11, 2019

An increase from the 25% tariffs implemented on May 10, 2019 to 30% has been delayed several times, and was suspended today. This tariff increase would affect the majority of packaging products shipped from China, including plastic bags, cotton bags and corrugated boxes.

August 30, 2019

The previously announced tariffs scheduled for September 1, 2019 have been increased from 10% to 15%. The affected categories available through Lumi fall under HTS categories 4901 and 4902 which covers publications (magazines, newspapers, booklets, books). These products have strong coverage across the Lumi Network, if you need help moving production to navigate these tariffs please reach out to your Lumi team.

August 19, 2019

A new 10% tariff is due to take effect on September 1, 2019. The list of affected products has been updated on August 13th by the USTR. As of this writing, the affected categories available through Lumi fall under HTS categories 4901 and 4902 which covers publications (magazines, newspapers, booklets, books).

May 10, 2019

The tariff increase of 25% has officially gone into effect today.

Products which were impacted by the 10% increase last year will be increased by an additional 15%, and new products impacted by the tariffs will increase by the full 25%.

Any products that are in production or in transit but have not passed through US customs will be affected. If you are a Lumi customer with current orders affected by the increased tariff rate you will see the tariff as a separate line item on your invoice.

Despite the 25% tariff, our market analysis indicates that the majority of plastic packaging is still more cost effective imported from China, however if you are interested in evaluating other options, request a quote.

December 4, 2018

With recent news of the tariff delays with China, we have delayed the 25% increase on China-sourced Lumi products until the increase goes into effect. Our prices now reflect the most recent tariff increase of 10% from September 2018. When it does, we'll update this post to reflect the change. 

If you ordered at the previously increased tariff rate, how does this impact you? For products imported from China after November 1, 2018, Lumi will refund the 15% tariff difference after your products arrive in the U.S., assuming that the tariff increase doesn’t go into effect before then. 

November 1, 2018

Over the past several months, you’ve probably heard the news about increasing tariffs on Chinese goods. Since August, nearly 6,000 line items in the Harmonized Tariff Schedule (HTS) were hit with a 25% tariff increase, going into effect on January 1, 2019.

In the third round of tariffs on September 24, 2018, nearly every type of packaging and packaging material made the list. 

How the tariffs will impact Lumi pricing

Starting today, we will increase baseline pricing by 25% for the following products to account for the increase in tariffs. This tariff increase will only affect items in your Dashboard if they are made in China.

  • Poly Mailers
  • Poly Bubble Mailers 
  • Paper Bubble Mailers 
  • Laminated Pouches
  • Tote Bags
  • Twisted-Handle Shopping Bags 
  • Garment Bags
  • Kraft Mailers
  • Any other custom-sourced packaging items from China

Why are we applying the tariff increase today if it takes effect on January 1st? With current lead times for manufacturing and sea freight from China, products ordered today will be affected by the tariff increase by the time they enter the US. You can stay on top of the current supply chain status by viewing the Delivery Schedule.

Historically, we have sourced the majority of our flexible plastic packaging (poly mailers, poly bags, laminated pouches) from China because of their highly competitive pricing, matched with their high standards for construction and print quality. We’re working with our manufacturing partners in mainland China to mitigate the U.S. tariffs as much as possible and provide geographic alternatives when we can. 

As always, we’ll keep you updated on any price fluctuations and the drivers behind them. 

February 19, 2018

Paper mills announce linerboard pricing twice a year, typically from February through March and September through October. We post all updates to linerboard pricing on our Corrugated Price Tracker.

We expect linerboard pricing to increase by $50/ton at the end of March, and this will increase the price of corrugated boxes by end of April 2018. At a glance, here are the predominant factors that are driving the pricing increase:

  • Most major paper producers have announced a $50/ton increase to a majority of grades, including the benchmark 42# kraft linerboard grade which is rising from $705-$755/ton, effective on all paper shipments starting March 1st.
  • Generally, increases in box pricing follow suit within a month of linerboard increases.
  • Rising freight costs is a primary drivers.
  • Mill capacity and moderately increasing demand are also key drivers.
  • Export prices of paper could also play a role, as well as continued consolidation on both mill and converting sides.

Reasons cited by mills for this particular increase include freight costs, moderate demand growth, and mill capacity. Domestic freight costs are at an all time high and the highest they’ve been since 2015, according to data from the U.S. Bureau of Labor Statistics. Demand continues to moderately increase a few percentage points per year, driven largely by the ecommerce sector. Current mill capacity utilization is at 93%-98%, so any growth is strains demand. (For reference, full capacity is typically considered to be around 85%, since 100% volume renders a factory inoperable.)

These are the predominant factors for the increase, but there are certainly other factors at work here as well. Notable, significant acquisitions on both the mill and converting side over the past year, and export paper pricing is at a high point.